At Raines Company, Total Fixed and Variable Costs Are $480,000

question 329

Multiple Choice

At Raines Company, total fixed and variable costs are $480,000 at a production level of 140,000 units. The company has total fixed costs of $200,000.
-If Raines Company reduces production to 180,000 units then the fixed cost per unit will be

• A) $1.18.
• B) $1.15.
• C) $1.00.
• D) $1.11.

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Definitions:

Fairly Priced Securities

Securities that are priced accurately based on their inherent risk and expected return.

Alphas

The excess returns of an investment relative to the return of a benchmark index, indicating the added value by the portfolio manager.

Betas

A measure of a stock's volatility relative to the overall market; a reflection of its risk compared to the market.

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A situation where a trader can make a profit without risk by simultaneously buying and selling the same or equivalent assets in different markets to exploit price differences.